ABU DHABI, UAE (Diya TV) – The United Arab Emirates (UAE) is actively considering a monumental investment of up to $50 billion in India, its second-largest trading partner. This strategic move forms part of the UAE’s broader vision to tap into the world’s fastest-growing major economy, with provisional commitments expected to be unveiled early next year, as reported by Bloomberg.
The potential investments follow high-level discussions between India’s Prime Minister, Narendra Modi, and UAE President Sheikh Mohammed bin Zayed in July. Over the past decade, both nations have actively worked towards fortifying their ties, with the shared objective of boosting non-oil bilateral trade to an impressive $100 billion. Modi’s recent visit to Abu Dhabi marked his fifth trip to the Gulf nation since taking office as prime minister in 2014.
The discussions involve the prospect of acquiring stakes in crucial Indian infrastructure projects and state-owned assets. Anticipated announcements align with Modi’s bid for a third term in the upcoming elections. Sovereign wealth funds, including the Abu Dhabi Investment Authority, Mubadala Investment Co., and ADQ, may play a pivotal role in these investments.
While specific timelines for a substantial portion of these investments are yet to be determined, and no final decisions on the size or timing of these announcements have been made, entities overseen by Sheikh Tahnoon bin Zayed Al Nahyan have initiated preliminary discussions about investing billions of dollars in India. Sheikh Tahnoon, serving as the chairman of International Holding Co., has expressed a keen interest in India as a potential growth engine for the next decade.
The UAE’s interest in India mirrors a broader trend of Gulf state-backed investors strengthening their ties with the country, drawn by the expanding middle class and the need to diversify from traditional investment destinations like Europe. The $50 billion investment plan not only underscores economic collaboration but also positions the UAE as a neutral player in an increasingly divided global landscape, avoiding alignment with either Washington or Beijing.
As one of the few nations managing close to $1.5 trillion in sovereign wealth, the UAE emerges as a crucial partner for India’s infrastructure development ambitions. The proposed significant foreign investments align with Prime Minister Modi’s efforts to bolster the Indian economy, making it a key narrative ahead of the 2024 elections.